Just days after rival Airtel announced a drop in net income, Reliance Jio has announced its Q1 results that sees a net profit of Rs. 612 crores with revenue hitting Rs. 8,109 crores as of June 30, 2018.
Continued profit
Rio also reported an average revenue per user of Rs. 134.5 which marks another dip in ARPU for the company. Back in December 2017, Jio saw an ARPU of Rs. 154 per customer before dropping to Rs. 137.1 crores in the January-March period. This ARPU is spread across the latest user base figures that total 215.3 million at the end of June 2018.
Jio has seen growth in its user base and reportedly added 28.7 million new subscribers in Q1 of 2018 compared to 26.5 million in the preceding three months so not only is it consistently attracting new customers but is also growing the rate in which it is adding customers. Further data suggest those that are joining Jio are also sticking around as the churn rate for the company of those who are joining the company compared to those who are leaving is 0.30 percent, which is the lowest across the whole industry.
Consumer behavior
While Jio was busy adding customers to its database, it also saw users consumed an average of 10.6GB data per month, which will drive the growth of the network and the demand for capacity as the overall customer base increases. Voice calls saw an average of 744 per month per user, with total data traffic for the entire quarter across the whole network was 642 crores GB and total voice traffic stood at 44,871 crore minutes. Perhaps unsurprisingly, videos accounted for the largest chunk of data usage with 15.4 hours worth video consumption per user per month. Jio backs up the network consumption stating that it was across 100 percent network availability for the largest mobile data consumption network and the largest VoLTE network in the world.
Looking to the future
Mukesh Ambani updated the shareholders to reinforce the raw numbers of the company’s success as to the vision for what is the next step.
“Reliance is making a strategic transition to become a technology platform company. We are focused on creating multiple platforms that will accelerate our growth and create significant societal value for years to come. Our connectivity platform has already made Jio the largest mobile data network in the world. Through Jio GigaFiber we will now build the home-and-office connectivity platform, a platform that potentially connects 50 million homes. It will be as big as the mobile connectivity platform. Moreover, it will have a much higher value proposition because the core investments have been made while building the mobility network. I am confident that our growth in these consumer businesses, based on asset-light platforms of the future, will be non-linear and exponential.”
This is also on the back of the company laying down its plans to reach 400 million customers by 2020. With the current rate of growth, Jio is certainly on its way to achieving its goal and will only be accelerated as the company begins to explore the cable market. In addition to Jio’s ambition to shake up cable TV, the company is also betting big on its Jio GigaFiber project to bring high-speed broadband to homes and business premises in 1,100 cities across India.
With the objectives that Jio is focusing on, you can be sure that the Q1 results reported will certainly continue strong into 2018 and beyond. The company didn’t reveal sales figures for its JioPhone, which is responsible largely for attracting many customers to the network with an affordable handset to consume the services Jio offers, but it would be a surprise if the sales figures were not very strong.
The post Reliance Jio Makes Profit for Third Straight Quarter; Subscriber Base Increases, ARPU Declines appeared first on MySmartPrice.
from MySmartPrice https://ift.tt/2OtylG3
No comments:
Post a Comment